Minimum Wage to increase by 30c
Taoiseach, Leo Varadkar has welcomed proposals from the Low Pay Commission to increase the national minimum wage to €9.55 from 1st January 2018. “It’s an increase well ahead of inflation, well ahead of average wage growth in the economy. It is modest, it works out at about an extra €12 per week but it is still an important step in the right direction” he said.
It would be the fourth increase in the minimum wage since 2011, the third in the last two years and the second under this Government. But it should be seen as a further step towards the Programme for Government commitment for a minimum wage of €10.50, the Taoiseach added.
Although the move has been welcomed in political circles, Retail Ireland warned it could impact on jobs in the sector. Thomas Burke, the director of retail Ireland said; “With little to no inflation in consumer goods and growing concern over the impact Brexit is already having on the retail sector, there is absolutely no economic basis for a further increase to the minimum wage. Such a rise at this juncture would significantly affect retailers’ ability to remain competitive against a backdrop of falling prices and rising costs within the industry.”
The Irish Business ad Employers Confederation (IBEC) argued that the minimum wage here is already one of the highest in Europe and with this increase would be 12% higher than that in the UK. It called on Tánaiste Frances Fitzgerald, who will oversee the changes, to delay the implementation.
“Workers need a pay rise to keep pace with the increasing cost of living in Ireland …but these employers must be supported to absorb the cost of pay increases in a way that doesn’t harm their competitiveness.” Said Niall Collins, the Fianna Fail enterprise spokesman.
Figures from the Central Statistics Office last April showed that 10.1% of employees earned the National Minimum Wage or less in that year. Tánaiste Fitzgerald said the increase “offers support to people and creates better opportunities to benefit from a better wage.”
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Workplace Relations Commission Annual Report Findings
The Workplace Relations Commission (WRC) has released their second annual report revealing interesting and surprising statistics. In 2016, a total of 4,830 inspections were carried out, of which 60% were unannounced. 2,398 breaches of employment legislation were recorded with an average of 1.2 breaches per employer. By far the most common breach was the failure to keep adequate employment records (62%) followed by employment permits irregularities (17%).
Other highlights from the report are:
• 14,400 complaints were made
• €1.5m was recovered in unpaid wages
• Almost 75,000 employees were covered by inspections
• 85% of workplace disputes were resolved
The most common complaints that were heard include:
• 28% Pay related issues
• 15% Unfair dismissal issues
• 12% Working time issues
• 11% Discrimination/equality related
• 9% Trade disputes/IR issues
• 9% Terms and conditions of employment-related
The sectors showing a higher degree of non-compliance were:
• 60% Electrical
• 53% Hair and Beauty
• 49% Construction
• 47% Agriculture
• 45% Wholesale and Retail
Keeping appropriate employment records is not just a legal requirement placed on the employer but is also protection for both the employer and employees. Having proper records in place ensures that information and documents regarding wages, hours worked etc., are readily available in the case of grievances and disputes or a WRC inspection. Not having records in place leaves the employer is at a distinct disadvantage in the event of a dispute and at risk of failing an inspection. Primary to this employers are advised to have robust contracts of employment and policies and procedures in place and to ensure that they are fully compliant and kept up to date.
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Top tips for reference check questions
The reference check stage of the recruitment process is a crucial stage for an employer to obtain vital information about a candidate and corroborating that what they have said on their CV and in their interview is factual and true. By speaking to references, you can gather more information about the candidate’s work ethics and personality traits that might not be apparent during the interview.
Factual Questions
Factual questions are important to ask to confirm information the candidate has given you regarding their previous role is accurate. For example:
• Can you please confirm the candidate’s dates of employment?
• Can you please confirm the candidate’s job title?
• What was your working relationship with the candidate?
Behavioral Questions
By asking behavioral questions you can gain a better insight into the candidate’s personality and work ethic. For example:
• Can you please describe the candidate’s attendance and timekeeping?
• Can you please describe the candidate’s job performance?
• Can you please describe the candidate’s relationship with their colleagues and also with management?
Hypothetical Question
There is one hypothetical question that is important to ask at the end of each reference check:
• Would you re-hire the candidate in the future?
This question can tell you a lot as there is a big difference between “No I would not”, “Um…maybe” and “Yes, I wish they were not leaving”.
Hiring the wrong candidate can be extremely costly for any organisation so ensure to always complete reference checks with at least two referees and ideally with a manager or superior.
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GDPR – What is it and what does it mean for you?
The General Data Protection Regulation will come into force on the 25th of May 2018, after 4 years of intense preparation and debate it was finally approved to replace the existing Data Protection Directive 95/46/EC.
The aim of the GDPR is to protect all EU citizens from privacy and data breaches in an increasingly data-driven world that is vastly different from the time in which the 1995 directive was established.
The key points of the GDPR are:
- Increased Territorial Scope
Arguably the biggest change to the regulatory landscape of data privacy comes with the extended jurisdiction of the GDPR, as it applies to all companies processing the personal data of data subjects residing in the Union, regardless of the company’s location. - Penalties
Under GDPR organizations in breach of GDPR can be fined up to 4% of annual global turnover or €20 Million (whichever is greater). This is the maximum fine that can be imposed for the most serious infringements. - Consent
Requests for consent must be clear and distinguishable from other matters and provided in an intelligible and easily accessible form, using clear and plain language. It must be as easy to withdraw consent as it is to give it. - Breach Notification
Where a breach occurs that is likely to “result in a risk for the rights and freedoms of individuals” that Data Controller must notify affected parties within 72 hours of first having become aware of the breach. - Right to Access
Part of the expanded rights of data subjects outlined by the GDPR is the right for data subjects to obtain from the data controller confirmation as to whether or not personal data concerning them is being processed, where and for what purpose. - Right to be Forgotten
Also known as Data Erasure, the right to be forgotten entitles the data subject to have the data controller erase his/her personal data, cease further dissemination of the data, and potentially have third parties halt processing of the data. Conditions for data erasure do exist, including the data no longer being relevant. - Data Portability
GDPR introduces data portability - the right for a data subject to receive the personal data concerning them, which they have previously provided in a 'commonly use and machine-readable format' and have the right to transmit that data to another controller. - Privacy by Design
Privacy by design calls for the inclusion of data protection from the onset of the designing of systems, rather than an addition. Under GDPR data controllers are called on to hold and process only the data absolutely necessary for the completion of its duties, as well as limiting the access to personal data. - Data Protection Officers
DPO appointment will be mandatory only for those controllers and processors whose core activities consist of processing operations which require regular and systematic monitoring of data subjects on a large scale or of special categories of data or data relating to criminal convictions and offenses. Specific criteria in relation to the appointment of a DPO exist.
The GDPR places onerous obligations on organisations in relation to the processing of personal data. In order to be ready for the May deadline, it is strongly advisable to start preparing now.
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€10K awarded to steeple worker who was told to “wing it” with no harness
The Workplace Relations Commissioner has awarded €10k to a worker for unfair dismissal when he was dismissed after suffering a back injury while carrying out work on a scaffold in with no safety equipment.
The complainant’s role was to make digital prints and then fit the products to buildings or vehicles. If the job required two people, then the complainant was accompanied by the respondent otherwise he went on his own.
In September of 2015 while working on site in Belfast he was “required to work at heights without a harness”. He said he was also told to operate a cherry picker even though he did not hold a license to do so. The court also heard that later in the month the complainant was previously told to ‘wing it’ when doing installation work on a church steeple with no harness.
In November 2015 the complainant injured his back while working on a scaffold with no safety harness and was on certified sick leave for 9 days. He said that while he was on sick leave he saw his job being advertised, the ad was later removed when he raised concerns with his boss.
In July 2016 while back on site, the complainant said he left a job he believed to be a health and safety risk when he was asked to work at a height of 15m without a harness. He later made a formal complaint to his employer but left 15 minutes into the meeting for being verbally abused for not completing the job. The complainant said he was constructively dismissed and had not worked since.
Finding
The officer who heard the case said that she found the complaint was “well founded” based on the uncontested evidence. The respondent didn’t attend the hearing. She directed the respondent to pay the worker €10,000 within 42 days of the ruling.
Learning Points
There are many things to take away from this case, first and foremost that the health and safety of an employee under no circumstance should ever be compromised. This case highlights the importance for employers in all industry's to carry out their own risk assessments. Employers should also note the importance of not only having a clear grievance and dispute procedures for staff to reference but for the employer to follow them correctly.
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How can I introduce contracts to existing employees?
A recent survey showed that 60% of employers in Ireland do not provide contracts of employment to their staff. This is an alarmingly high figure considering two very important facts: firstly it is a legal requirement, and secondly, the cost of non-compliance can be extortionate. So why do employers take that risk? Here are some of the explanations employers gave:
• Our employees have been with us for years, we don’t need to worry about contracts.
• I only have 4 employees; I don’t need to provide contracts.
• We’re a very small company, I cannot afford the expense.
• Employees will think we are trying to bring in more rules and won’t trust the good relationship we have built with them over the years.
No matter what your reasoning behind not having contracts of employment in place, under the Terms of Employment (Information) Acts 1994–2014 you are obliged to provide a written contract of employment to a new staff member no later than 2 months after their commencement. Furthermore, the cost of non-compliance (whether from an inspection from the WRC or from a staff grievance) can be crippling, especially for SME’s.
Introducing contracts to already existing staff can be a daunting task to some employers. We have compiled 4 simple steps to follow if you have decided that the time has come to roll out contracts.
1) Hold a staff meeting
Bring all of your staff together at once to inform them of your decision to introduce contracts into the workplace. Give a brief overview of what is contained in the contract and explain why you are doing it, whether it is to ensure that the workplace is compliant, promoting consistency and compliance or both. Take any general questions your staff may have.
2) Distribute the documents
Once you have drawn up contracts for each staff member print two copies of each and deliver both copies to the appropriate staff member. Ask the staff member to review and sign both copies and return one copy within a reasonable time frame, generally 1-2 weeks.
3) Be open to taking questions
Good communication between employers and staff is crucial for a good relationship, especially at this stage. Be available to your employees so as they can ask any questions or raise any concerns they may have. Answer all questions openly and honestly. Refusing to have that discussion may come across as defensive and will heighten distrust in employees.
4) Collect and file
Collect one copy of the signed contracts from each employee and be sure to file away in a safe and secure location for future reference. Instruct the employee to also keep their signed copy in a secure location.
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5 essential steps when hiring new employees
Minister for Jobs, Enterprise and Innovation Mary Mitchell O’Connor, has revealed that unemployment levels have dropped to 6.4% from 8.4% in May 2016 making Ireland the 6th most competitive economy in the world. The CSO statistical release also revealed that the number of persons on the live register is the lowest number recorded, seasonally adjusted since 2008. If you’re a business owner that’s in a fortuitous position to be taking on new staff we applaud you, although it is no easy task. We have compiled 5 key steps to remember when hiring new employees.
1) Advertise
Employment and equality legislation is applicable the moment you post a job advert, therefore be sure to avoid discriminatory descriptions that may exclude a particular group of people from applying. Once you have a clear understanding of the duties and responsibilities of the role you will be able to create a clear job description and person specification, listing the skills and knowledge that you require. Remember, a well-defined job description is essential for attracting the most qualified candidates. For more information click here
2) Interviews
During an interview, we want to obtain important information from the candidate and also build a friendly rapport. Hiring the wrong person can be a very costly mistake for any company so determining whether they’ll be a good fit for the company is important. To ensure your questions don’t find you guilty of discrimination be sure to avoid questions relating to age, marital and family status, gender, disability, religious belief, sexual orientation, race, membership of the travelling community, or any physical attributes of the candidate. For more information click here
3) Contracts of Employment
Every employee who works for your business must receive a written contract of employment no later than 2 months after their commencement. If you do not issue your employees with a written contract you are putting yourself at risk of large settlements in the case of staff disputes, and fines in the case of regulatory inspections. Having contracts also clearly defines the contractual relationship between you and your employees. Take time to ensure that the contracts of employment contain sufficient clauses to govern the working relationship between you and your employees. For more information click here
4) Staff Handbooks
Whether you employ 1, 10 or over 100 staff, having an employee handbook is an essential way to communicate policies and procedures with staff without the contract of employment getting too long-winded. Issuing a comprehensive staff handbook is vital for not only setting clear boundaries in the employment relationship but also in protecting your business if a claim was ever brought against you. For more information click here
5) Induction
You have spent a lot of time and money on a vigorous recruitment process so be sure not to miss the very important final step, the induction. A structured induction programme welcomes your new employee, gives them an objective view of your company, your culture and work ethic. This will allow them to better integrate into the workplace which in turn will help boost staff retention rates. Your new employee will decide quickly if they feel at home and if they go through a well-planned induction program they are more likely to remain at your company. For more information click here.
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€7,500 awarded to disabled worker mocked on social media
A disabled employee for Mr. Price Branded Bargains has been awarded €7,500 by the Workplace Relations Commission (WRC) in a discrimination case brought by him under the Employment Equality Act when it was found a store manager had shared three recordings of the employee on a staff WhatsApp group for the enjoyment of colleagues.
The unnamed sales assistant was made aware of the recordings on 1 December 2015, by an employee who had by then left the company. He became traumatized and had to go on work-related stress leave and hasn’t returned to work since.
In defense, Mr. Price argued that one recording showed the complainant conversing with a customer and a second recording showed him behaving in a manner on the shop floor, which posed a health and safety risk for himself and others.
Finding
The Adjudication Officer in the case, Ray Flaherty, found that three video recordings of the man at work were shared by the shop manager for fun with staff "who had no operational need or entitlement to review the material".
“It is clear from viewing the recordings that not only was the complainant discriminated against on the grounds of his disability, but his basic right, and that of any employee, able or disabled, to the provision of dignity at work was seriously undermined.”
Learning Points
Under no circumstances should the mocking of an employee be condoned in the workplace - that goes without saying. In this case as the manager shared the video footage via WhatsApp, and the fact that the employee that reported the videos only did so after they had left the company, highlights the importance for employers to have a social media policy in place detailing what is or is not acceptable, and how to report any breaches of a policy as soon as they happen.
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Be careful of discrimination in job interviews
Having a wide range of interview questions is vital to find out as much information about a candidate as possible to assess whether they have the right skills and attributes for the role. When conducting an interview you may veer off your pre-set questions when building rapport with a candidate and to do a little digging in some areas, however asking the wrong question could leave you at risk of a hefty discrimination claim.
Marital and family status, sexual orientation
Although it may seem friendly asking if a candidate has a family or children it is not suitable for an interview. Asking such questions may leave you appearing more favorable to someone who may seem more stable or someone who might not have family commitments.
Do you have or plan on having children? What childcare arrangements do you have?
The job may require some overtime at short notice. What days/hours are you available to work? Can you travel?
Place of birth, race, religious beliefs
Again, employers may think they are being friendly asking questions like: where are you from originally? Or do you get to visit home often? But be warned that any questions surrounding birthplace, background or religious beliefs can lead to discrimination.
Where were you born? What religion do you practice?
Are you eligible to work in Ireland? What languages do you speak or write fluently?
Gender, age
Asking a candidate questions about their gender or age in relation to their ability to do a particular role is discrimination. If there are certain challenges to a role you may certainly ask about their ability to handle those situations but never imply that their gender or age may affect this.
We’ve always had a man/woman in this role. Do you think you can handle it? How many years do you think you’ll have left until you retire?
What can you bring to this role? What are your long term goals?
Location, disability, illness
You may think asking questions regarding where a candidate lives and how far/long it will take to commute to work is innocent but asking these questions could cause discrimination relating to a neighborhood heavily populated by an ethnic group or social class. Also asking questions around gaps in a candidate’s employment is acceptable, but asking questions around a disability and how it may affect their capabilities to do a job is not.
How far would your commute be? Do you smoke/drink?Are you able to start at 9 am? Have you ever been disciplined due to alcohol/drugs?
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Forced to retire at 65? I don’t think so
John Glavey V Connaught Airport Development Co Ltd
A court recently fined Connaught Airport Development Co Ltd €6,500 for the unfair dismissal of Mr. Glavey, a veteran barman who was forced to retire from his role as a senior bartender at 65 years of age. Mr. Glavey had been working in the bar at West Airport Knock since 1991. Although the airport did not have a policy on retirement age, they said that it was custom for all employees to retire at 65.
Mr. Glavey argued that not only was there no retirement age stated in his contract of employment but with the state pension at 66 years there is a requirement on him up to 66 years to be available for work. At the age of 65, Mr. Glavey was fit and well and had no difficulty carrying out the duties of his job. It was heard that Mr. Glavey had been one of few employees that held a 39 hour per week contract as opposed to new recruits on temporary/part-time contracts.
Finding
The Labour Court found that as the airport firm had ample opportunity to inform Mr. Glavey of a requirement that he retire at age 65 he was unfairly dismissed by reason of his age and awarded him €6,500.
Learning Points
As an employer, you must ensure that if you do have a compulsory retirement age in your contracts that you have a legitimate reason, and can objectively justify your retirement age. In the past courts have ruled reasons such as health and safety or security as objective reasons; however, what will be acceptable reasons will differ from company to company. Should you require your company to have a retirement age, be sure to re-assess your reasons and have clear, sensible explanations for doing so.
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